Believe it or not, Open Enrollment season is upon us! There’s been a lot of talk lately about the Medicare Plan F supplement going away in 2020. Here are some helpful facts to clarify what our new reality looks like.
For decades now, the Medigap Plan F has been by far the most popular supplement purchased for Medicare eligible individuals. The fact that it covers all deductibles, coinsurance and copays easily justify that. For many, this has been the first time they’ve ever had no out of pocket expense when receiving medical care such as a doctor visit, lab work, or even a surgery or hospital stay. This is what some may refer to as “first dollar coverage” since whichever company you got the supplement from pays immediately. Sound too good to be true? Well, if you weren’t eligible for it by the end of 2019, it is no longer available.
Along with Plan F, the Plan C supplement is, although less popular, also no longer available starting January 1, 2020. The common denominator between the two is that they both cover the Medicare Part B deductible. Based on the Medicare Access and CHIP Reauthorization Act, Congress has decided that they no longer wish to have plans available that pay the first dollar, without any deductible to meet, because patients may access care more often or unnecessarily.
For those already on Plan F (or even eligible but not yet enrolled), the good news is that you can keep it! You are “grandfathered” in on that supplement, at least for the time being. Rates may increase over the years but that’s always a possibility. For others moving forward, the Plan G will be the next best option for a Medigap supplement. G covers everything that F does except for that Part B deductible… but often times, the difference in premium comes out to be almost the same in the end.
Medicare can seem like a very overwhelming, stressful transition in health insurance, especially when there are heavily regulated guidelines and changes like this. We are happy to discuss how this affects you or your loved ones and help guide you to the best protection for your needs.
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